Lucas Bols Holding BV — FY2020/21 Earnings Presentation
31 slides from Lucas Bols Holding BV's earnings presentation, May 27, 2021
Slide 1: Lucas Bols
LUCAS # BOLS
Slide 2: Disclaimer
DISCLAIMER DISCLAIMER THIS PRESENTATION may contain forward looking statements. These statements are based on current expectations, estimates and projections of Lucas Bols’ management and information currently available to the company. Lucas Bols cautions that such statements contain elements of ris
Slide 3: Content
1. Highlights FY 2020/21 2. Highlights by brand CONTENT 3. Financial highlights 4. Outlook
Slide 4: Significant COVID-19 impact but improving trends
SIGNIFICANT COVID-19 IMPACT BUT IMPROVING TRENDS + Revenue was negatively impacted by COVID-19, mainly as a result of on-trade closures, travel restrictions and destocking by distributors, and came in at € 57.3 million (down 32% year-on-year) + Depletions (sales by distributors) were down 16%, which
Slide 5: Highlights FY 2020/21
——— HIGHLIGHTS FY 2020/21 LUCAS # BOLS
Slide 6: Global brands: Passoa and Galliano outperformers
GLOBAL BRANDS PASSOA AND GALLIANO OUTPERFORMERS Depletions FY20/21 Q1 20/21 | Q2 20/21 | Q3 20/21] Q4 20/21 + Revenue of the global brands was down (Value) vs vs vs vs vs GLOBAL BRANDS 35% to € 42.1 million. Fy19/20 |__| Q1 19/20 | @2 19/20|Q3 19/20| @4 19/20 Global brands] -17% -35% ~4% -21% -6% Bo
Slide 7: Regional brands: strong improvement in depletions in Q4
REGIONAL BRANDS STRONG IMPROVEMENT IN DEPLETIONS IN Q4 REGIONAL BRANDS Liqueurs 4 Dutch Genever portfolio Value Brands Revenue of the regional brands was down 22% to € 15.2 million while depletions were down 15%. The portfolio performance within the regional brands was mixed. More retail-oriented br
Slide 8: Depletions show clear improving trends
DEPLETIONS SHOW CLEAR IMPROVING TRENDS Regions % revenue of total FY 20/21 vs FY 19/20 Depletions (value) FY 20/21 vs FY 19/20 Western Europe -27% -16% Asia-Pacific -30% -26% North America -38% 1% Emerging Markets -44% -33% Revenue split and development FY 2020/21 + Western Europe (53.7% ) - In a nu
Slide 9: Highlights by brand
—— HIGHLIGHTS BY BRAND LUCAS # BOLS
Slide 10: Bols Cocktails: one consistent look & feel
BOLS COCKTAILS ONE CONSISTENT LOOK & FEEL Global relaunch of our Bols Liqueurs range with natural botanicals in all our markets. Global relaunch of Bols Vodka in the Bols Cocktails look & feel. Launch of Bols Ready to Enjoy Cocktails in a can. All Bols propositions with one consistent design.
Slide 11: Global relaunch Bols Liqueurs
FLAVOURS ih FEX) NaruRAL notanients CKTAIL BOLS COCKTAILS GLOBAL RELAUNCH BOLS LIQUEURS + Bols Liqueurs heavily impacted by COVID-19 due to high dependency on trade sales. + During 2"¢ quarter strong recovery due to tempory opening of on-trade, mainly driven by China, the US and selected other marke
Slide 12: Bols Cocktails: new commercial initiatives
BOLS COCKTAILS NEW COMMERCIAL INITIATIVES Home cocktail consumption: + Increased retail activation programs to leverage the clear trend towards mixing and drinking cocktails at home with DIY packages. E-commerce: * Continued developing our e-commerce proposition, increasing our exposure to in-home c
Slide 13: Passoa
THE PASSION pang WITH NATURAL PASSION inh » (UEOR 17% vO, PASSOA * Despite the pandemic 20/21 has been a strong and promising year for Passoa. + Depletions were up year-on-year in key markets UK, the US, the Netherlands, France, BeLux and Puerto Rico. * The Porn Star Martini, consolidating its posit
Slide 14: Galliano
GALLIANO Galliano clearly reversed the declining trend, showing solid year- on-year growth in 2020/21. In Australia and New Zealand Galliano’s strong performance was driven by accelerated growth in retail sales as consumers socialised at home with Galliano Sambuca. Scandinavia achieved good results
Slide 15: Damrak launched Virgin 0.0
DAMRAK LAUNCHED VIRGIN 0.0 — Damrak has become the first a global gin brand to introduce a non-alcoholic line extension — Damrak Virgin. } hee & Damrak Virgin launched in the Netherlands in April, followed by a launch in the US in August. Damrak Virgin was the highest rated non alcoholic spirit in t
Slide 16: Nuvo
6 NUVO \ - P Retail brand Nuvo performed well. The US business showed strong a growth due to an expansion in the number of points of | distribution and improved | rotation. E-commerce and direct-to- consumer activation programs supported Nuvo sales across ~dy various key US retail states. The roll-o
Slide 17: Pisang Ambon
PISANG AMBON AS - Brand has been relaunched with a stronger positioning and design. * New market listings in Norway. 1/3 PIsANG * Off-trade and in home 1/3 Tonic consumption boost in the key 1/3 ORANGE JUICE markets France and Belgium. BREAK, F FROM THE ORDIN PDP. + Strong and increasing demand in F
Slide 18: Genever
“ GENEVER NETHERLANDS BOLS sieeeneis Exclusive launch of Bols Corenwyn | eh 10 years and build our share in Genever specialty segment. Improve our position in specialty Genever segment with increasing distribution for Bokma specialties. Educate Gall & Gall store owners with digital tasting sessions
Slide 19: Pallini
i PALLINI pe Lucas Bols signed an agreement but with Italy-based Pallini S.p.A. regarding the US distribution of the Pallini Limoncello brand. Lucas Bols started to distribute the brand in the US as from December 2020 onwards. Pallini was successfully transferred onto the Lucas Bols US distribution
Slide 20: Financial highlights
— FINANCIAL HIGHLIGHTS —— LUCAS # BOLS
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Slide 23: Revenue and gross margin by brand
-31.8% 84.0 -22.5 73% (LY: 77%) -4.2 57.3 0.0 27% (LY: 23%) • • FY 2019/20 Δ Global Brands Δ Regional Brands Δ FX FY 2020/21 • Gross margin 56.7% 54.9% 46.0% 52.5% • • (reported) (LY: 60.8%) (LY: 43.3%) − − • • − − − − − − • •
Slide 24: Revenue and gross margin by region
-31.8% 84.0 10% -11.6 (LY: 12%) 0.6 -0.8 -5.3 74% -5.7 -4.1 57.3 18% 2.4 0.0 92.5 (LY:20%) 92.2 54% (LY: 50%) 19% (LY: 18%) FY 2019/20 Δ Western Δ Asia-Pacific Δ North Δ Emerging Δ FX FY 2020/21 Europe America Markets • • Gross margin 56.7% 47.7% 70.6% 47.7% 53.8% 52.5% • (reported) (LY: 53.2%) (LY:
Slide 25: Cost measures reduce impact on operating profit
COST MEASURES REDUCE IMPACT ON OPERATING PROFIT P&L — OPERATING PROFIT AND DISTRIBUTION & ADMINISTRATIVE EXPENSES Operating profit? development (in € millions) (1) Gross profit down € 17.5 million, as COVID-19 impacts both volumes (on-trade closures, destocking) and pricing / gross margin % (mix eff
Slide 26: €6.9 million reduction in net debt
€ 6.9 MILLION REDUCTION IN NET DEBT BALANCE SHEET (€x mittion| FY FY + Intangible assets decrease following an impairment (€ 8.9 million) 2020/21 | 2019/20 * Carrying value of investments in joint ventures increases by € 1.7 million Non-current — Increase in equity stake Avandis (from 33.3% to 50.0%
Slide 27: Focus on cash results in solid cash generation
FOCUS ON CASH RESULTS IN SOLID CASH GENERATION CASH FLOW f——— Free operating cash flow (in € millions) 27.9% | 114 0.3 o2—--18 32 03 85 FOCF —AGross__—Cost_~«—«ADeprec. AWorking Income Capt Other FOC FY2019/20 profit savings (excl. «capital taxes, FY 2020/21 impairment) Free operating cash flow® dec
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Slide 29: Outlook
OUTLOOK LUCAS # BOLS
Slide 30: Outlook
OUTLOOK Now that vaccination programmes are being rolled out globally and markets are gradually reopening, we are confident that the strength and resilience of our brands will enable us to recover most of the COVID-19 sales decline, where shipments are expected to follow depletions. However, we do e
Slide 31: Lucas Bols
LUCAS #BOLS